Canadian manufacturing sales likely to have grown sequentially in May

Canada’s manufacturing renaissance supporting the rebound in the goods sector is likely to have continued into May. According to a TD Economics research report, manufacturing sales are likely to have grown 1 percent sequentially. Solid recovery in motor vehicle shipments following a 3.7 percent drop last month supports the projection. Auto exports rose sharply while a further rebound in metal/mineral products should add to the headline strength.

But there are some countering factors. Wood product shipments are expected to have contracted greatly after the new soft wood lumber tariffs and gasoline sales would be negatively affected by declining prices at the pump. Because of a countering rise in core producer prices, volumes are expected to be consistent with the nominal print that would leave real manufacturing sales growth at its strongest level since late 2014 on a year-on-year basis, added TD Economics.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at 39.9589, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -94.3269. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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